How Having Kids Affects Your Insurance
Your family is growing, and soon it won’t just be you and your spouse occupying your little bungalow! If you thought taking care of two dogs was a big responsibility – think again. Having a child, or two, or three, is a whole new ball game! With this new addition comes the need to review your home and life insurance to make sure that even the smallest members of your family are protected.
Your child will be living with you for at least the next 18 years, which means you need to consider the expected – and unexpected – events in life. You might expect hail damage to your roof at some point, but you might not be prepared for that old maple tree to fall on your house.
A basic Homeowner’s Insurance Policy will provide you with protection for:
- Your personal belongings
- Your home and free-standing structures on your property (such as sheds)
- Liability lawsuits if someone gets injured on your property
- Other specified perils such as hail, fire, lightning, theft, vandalism etc.
Your home insurance policy will also provide you with the funds for alternative living arrangements if your home is deemed uninhabitable for a period of time.
Also, if you’re planning to move to a bigger house after the birth of your little one, consider before buying a new home how much this might increase your premiums and whether you can afford to do so.
Talking with a licensed broker will help you to determine the types of coverage you’ll need and can make this process more manageable.
Another unexpected circumstance is the death of one or both parents when a child is young. Would your family be able to support themselves financially if you were gone? While terrible to think about, many families experience this loss before they should ever have to. If your income is vital to supporting dependants, planning for your future, sending your children to college, paying the mortgage or other recurring bills – life insurance is worth talking about.
The right life insurance policy will provide your family with at least five to seven years worth of “your income,” so that they can continue to have the same quality of life after a sudden death. We also recommend having some additional life insurance protection to cover the cost of the funeral itself. These funds can help take care of funeral arranges during a time when the last thing your family should be thinking about is money.
The younger and healthier you are, the easier it is to get life insurance at lower rates.